What did Indians buy most as Diwali sales hit historic high?

Sales of Rs 5.40 lakh crore of goods and Rs 65,000 crore of services across the country constituted India’s highest ever Diwali season turnover and underlined a historic surge in retail trade and consumer spending in the 2025 festive season.

According to the latest survey by the Confederation of All India Traders (CAIT), this year’s Diwali sales reflect a remarkable increase of 25 per cent compared to 4.25 lakh crore rupees in 2024.

The findings, compiled by CAIT Research and Trade Development Society, are based on a pan-India survey conducted across 60 major distribution centers representing Tier 1, Tier 2 and Tier 3 cities between Navratri (September 29) and Diwali (October 20). The study evaluated sales performance, consumer sentiment and economic impact of GST rationalization and the government’s call to adopt Swadeshi.

CAIT’s report attributed this record-breaking performance to two main factors: rationalization of GST rates across key consumer categories and strong public response to Prime Minister Narendra Modi’s ‘Vocal for Local’ campaign.

The survey described PM Modi as a “brand ambassador” for the GST cut and Swadeshi products, noting that his appeal to buy Indian goods resonated widely with both traders and consumers. Nearly 87 percent of consumers surveyed said they preferred Indian-made goods to imported goods, and demand for Chinese products has fallen sharply in all major markets.

Sales from Indian manufacturers increased by over 25 percent compared to last year; This signaled a decisive step towards economic self-reliance under the government’s Aatmanirbhar Bharat vision.

Traditional markets experienced a strong recovery; brick-and-mortar retail accounts for nearly 85 percent of total Diwali business. Gold and jewelery contributed around 10 per cent to total sales, followed by groceries and FMCG (12 per cent), electronics and electrical (8 per cent) and consumer durables (7 per cent). Other key segments such as ready-to-wear, home décor, desserts, furniture and gifts also recorded double-digit growth in various regions.

Besides goods, the services sector, including packaging, travel, hospitality, event management, manpower agencies, taxi services and delivery networks, generated an estimated Rs 65,000 crore in festive business, further strengthening the broader retail ecosystem.

The report stated that market sentiment remains optimistic, with the Investor Confidence Index (TCI) rising from 7.8 to 8.6 in 2024 and the Consumer Confidence Index (CCI) rising to 8.4, reflecting optimism about the stability of the economy and spending potential.

Traders attributed the rise in demand to declining GST rates, stable prices and moderate inflation; These, in turn, increased the purchasing power of consumers. The festive season also created around 50,000 temporary jobs in logistics, transportation, packaging and distribution services; rural and semi-urban regions contributed approximately 28 percent of total sales; This indicates deep market penetration beyond metropolitan cities.

CAIT highlighted that this year’s Diwali sets a new benchmark for India’s retail economy, driven by nine crore small traders and countless small manufacturers who form the backbone of the non-institutional, non-farm sector.

(Except for the headline, this story has not been edited by DNA staff and is published from ANI)